Long-Term Care Insurance, Reverse Mortgages & More

The state insurance regulators' guide to how long-term care insurance works: benefit triggers, elimination periods, inflation protection and Partnership policies that protect assets if Medicaid is needed later.

When to use it: When you find a parent's long-term care policy and need to understand what it pays, or are shopping for coverage.

Explains how a long-term care insurance claim works: the benefit trigger (help with 2 of 6 daily activities or cognitive impairment), the insurer's assessment, the plan of care, and the elimination period before payments start.

When to use it: As soon as a parent with a long-term care policy starts needing help, so the claim and waiting period start right away.

Find your state's insurance department to ask questions or file a complaint about a long-term care, life or other insurance company.

When to use it: When a long-term care insurance claim is delayed or denied, or you want to check out an insurer or agent.

Every HECM reverse mortgage borrower must first meet with a HUD-approved counselor about costs, eligibility and alternatives. Use HUD's counselor locator or call HUD's counseling line.

When to use it: Before any reverse mortgage application, especially if a parent may move to assisted living soon.

A reverse mortgage comes due when the last borrower permanently moves out, including to assisted living or a nursing home, so it rarely works to pay for a move out of the home.

Plain-language federal guide to reverse mortgages, including what happens if the borrower moves to a nursing home or assisted living, protections for a non-borrowing spouse, and how to avoid losing the home.

When to use it: When a reverse mortgage is suggested as a way to pay for care.

The loan may have to be repaid early if taxes, homeowner's insurance or repairs are not kept up.

Explains accelerated death benefits, life settlements (selling a policy for cash, generally age 70 and up), viatical settlements for the terminally ill, and combination life and long-term care policies.

When to use it: When a parent owns a life insurance policy and the family is considering using it to pay for care.

Life settlement proceeds may be taxed, leave little or nothing for heirs, and can count against Medicaid eligibility; get independent advice from an elder law attorney or tax professional and compare offers first.

Government explainer on using a reverse mortgage to pay for care at home: age 62 and up, required counseling, lump sum, monthly or line-of-credit payouts, and the costs as the loan balance grows.

When to use it: When a parent plans to stay at home and has substantial home equity.

The loan balance grows over time and equity shrinks, and the loan must be repaid when the borrower permanently moves out.

Long-term care insurance for federal employees, retirees, military members and their families. New applications are suspended for 24 months starting December 19, 2024; people already enrolled keep their coverage but cannot increase it.

When to use it: When a parent is a federal or military retiree who already has an FLTCIP policy and needs to file a claim.

No new enrollments are accepted during the suspension, which OPM may extend.

Handles retirement, survivor and disability benefits and Medicare enrollment for railroad workers and their families.

When to use it: When a parent or late spouse worked for a railroad and you need to check income or Medicare benefits.